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Merrill, Morgan Stanley FAs: Client Lending is Growing

April 7, 2021

Low interest rates, among other factors, are contributing to growing interest in client lending, according to some financial advisors.

Morgan Stanley, for example, has more than $5 billion in loan commitments, Deborah Montaperto, private wealth advisor at Morgan Stanley Private Wealth Management, tells Barron’s. The firm saw a jump in client lending at the beginning of the coronavirus crisis. “There was this sense that when the world feels precarious, it is good to have dry powder,” she says, according to the publication. As things started to calm down, meanwhile, interest in client lending continued growing due to the low rates, according to Montaperto, Barron’s writes.

Corina Davis, wealth management advisor at Merrill Lynch, also says that the current low rates for both home and investment property are driving growth in client lending, according to the publication.

“It is also increasing due to opportunities in mergers and acquisitions; with many baby boomer generation business owners looking for opportunity for transition or exit of their business, other small and midsize business owners have the opportunity to invest in their business through acquisition,” she says, according to Barron’s.

Rudy Adolf, CEO of Focus Financial Partners, meanwhile, tells the publication that the low rates “create particularly attractive opportunities for wealth structuring.” There’s also been demand for insurance premium financing in anticipation of estate taxes, as well as some demand for commercial real estate, he says, according to Barron’s.

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By Alex Padalka
  • To read the Barron's article cited in this story, click here if you have a paid subscription.
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Tags:  Investment strategies , Tax planning , Insurance planning , Focus Financial Partners , Merrill Lynch , Morgan Stanley , Morgan Stanley Private Wealth Management

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